Yep, so does http://www.hoaxbusters.ciac.org :

Spunkball Warning
March 2002

Spunkball??? Sounds like a bad movie. Pretty scary huh? At least until you think about it a little. Imagine trying to soak a rag in gasoline and wrap it in tinfoil. What would you end up with? A tinfoil ball coated with gasoline and reeking with gasoline fumes. Consider now what happens when you bring a lit match near it? Poof, the teen attempting to throw the Spunkball goes up in flames. This is a self curing prank. Actually, this is an old one that keeps coming back in different variants.